Real estate firm Avison Young plans deals after recapitalization

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Or sign-in if you have an account.There’s opportunity for Avison Young to expand further in commercial properties, servicing the build-out of data centres, as well as more upgrades and conversions of offices. Photo by Andrew Harrer/BloombergAvison Young Canada Inc. is plotting growth and acquisitions after creditors swapped debt for equity in the Toronto-based real estate advisory group.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountThe recapitalization deal cuts Avison Young’s annual cash interest expenses by more than 70 per cent, chief executive Mark Rose said, adding that he agreed with lenders that spending the money on growth was more productive than servicing debt.“They saw the possibility and the probability of the returns as equity holders,” he said in an interview. The creditors will put in more equity, he added, declining to share specifics or the names of the investors.SUBSCRIBER EXCLUSIVE: FP West: Energy Insider brings you behind the oilpatch’s closed doors with exclusive insights from insiders every Wednesday morning.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of FP West: Energy Insider will soon be in your inbox.We encountered an issue signing you up. Please try againThe lenders are “traditional Wall Street” names that are “committed to the company, and excited about what the growth prospects are,” he said.Founded in 1978, the Canadian company offers real estate management, brokerage and advice. Now it’s planning to push into new market segments, which potentially means substantial deals, Rose said. He’s bullish on the commercial real estate market and argues the bottom of the cycle was around June last year.“We are full-bore into a recovery,” he said, even if threats of United States tariffs against Canada can prompt clients to hit pause on some plans.Rose said there’s opportunity for Avison Young to expand further in servicing the build-out of data centres, as well as more upgrades and conversions of offices. Money could be spent on recruiting teams, tuck-in acquisitions and some larger deals, he added. Avison Young is familiar with M&A, having bought more than 50 companies, he said.The recapitalization will take the firm’s debt to less than three times its earnings before interest, tax, depreciation and amortization, Rose said. “We will be very, very flush.”The company expects the deal to close in October, and afterward roughly half of Avison Young will be owned by partners, Rose said.In February 2024, the firm announced a previous deleveraging deal with lenders to trim its financial obligations and secure additional capital. Part of that deal involved defaulting on a senior term loan in late 2023, though that was by agreement with lenders and “purely technical,” Rose said at the time.We apologize, but this video has failed to load.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. 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